Signing of US$30 Million Debt Facility
January 10, 2013
The facility, which is secured over the shares and business assets of Shanta Gold’s Tanzanian subsidiary company, Shanta Mining Company Limited, will bear interest at a rate of Libor plus 8.0% per annum, with a 2.0% arrangement fee. The facility is repayable over two years with a capital holiday for the first six months and repayment occurring over 18 equal monthly instalments thereafter.
As previously announced, proceeds from the new facility will be partially used to cover the remaining monthly principal repayments of the outstanding loans with FBN (US$10.0m) and YA Global Master SPV Ltd (US$5.3m). The new financing, together with the proceeds from the October 2012 placing, and the Company’s cashflow generated by its gold sales provides Shanta Gold with appropriate cash headroom during the New Luika ramp up phase.
Mike Houston, CEO of Shanta Gold, commented:
“We are pleased to have finalised and drawn down sufficient funds to provide the necessary headroom during the early stages in the production growth curve and to enter into this new phase in banking relationship with FBN who continue to show a strong commitment to the New Luika project.”
|Shanta Gold Limited||Tel: +255 (0) 22 2601 829|
|Mike Houston, CEO
Edward Johnstone, FD
|Nominated Adviser and Broker|
|Liberum Capital Limited||Tel: + 44 (0)20 3100 2000|
|Michael Rawlinson / Tom Fyson / Christopher Kololian|
|Financial Public Relations|
|FTI Consulting||Tel: +44 (0)20 7269 7100|
|Billy Clegg / Oliver Winters|
About Shanta Gold Limited
Shanta Gold is an East African focused gold mining company. It currently has defined ore resources on the New Luika and Singida projects in Tanzania and holds exploration licences over a number of additional properties. The Company’s flagship New Luika Gold Mine commenced production and achieved first gold pour in August 2012. The Company is admitted to trading on AIM and has approximately 462 million shares in issue.
For further information visit the Company's website: www.shantagold.com.